Cabotage relaxation order issued

The ministry of shipping has issued an order on Friday stating that the cabotage restrictions for transhipment of containers at the international container transhipment terminal (ICTT), Vallarpadam, may be relaxed under Section 407(3) of the Merchant Shipping Act, 1958. This relaxation is subject to 100 per cent radiological scanning of all the containers passing through the terminal.

The Union cabinet had decided to allow foreign feeder vessels at ICTT in September. But the shipping ministry had not issued the order as the ministry of defence raised objections regarding scanning of all the containers. The Cochin Port has already established a radiological scanning facility at the terminal. The relaxation is for three years and ships carrying Chinese and Pakistani flags will not be allowed at the port.

The shipping ministry’s order further stipulates security procedures in compliance with applicable regulations of the ISPS Code and the Centre’s instructions. A meeting of the revenue secretary and the secretary (shipping) on December 11, 2012, has decided that the customs will procure, install and operate X-ray scanners for the ICTT. 

Various trade bodies in Kerala have welcomed the announcement of the ministry of shipping. The export and import trade in India will benefit from this development by reduction in transit time of up to seven days and reduction in international freight of up to $300 per container, a Cochin Port press release said.